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PILOTING OUTPUT BASED AID: PENANG’S ORGANIC DIVERSION WASTE POLICY 1 Prepared By Phee Boon Poh & Khor Hung Teik Penang State Government, Malaysia 12 Aug 2014

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PILOTING OUTPUT BASED AID:

PENANG’S ORGANIC DIVERSION WASTE POLICY

1

Prepared By Phee Boon Poh & Khor Hung Teik

Penang State Government, Malaysia12 Aug 2014

PENANG, MALAYSIA

•Penang Island was established in 1786 by Capt. Francis Light of the British East India Company

•Mainland Penang (Province Wellesley) was occupied in 1790, and placed together under the administration of Straits Settlement.

•Independence since 31 Aug 1957

•George Town, a port town, was developed as hub for trading, commerce and culture.

.Country : Malaysia

•Coordinates: 5o24’N 100o 14’E

•Area: 1,048 km2

•Population: 1.6 million (as of 2010)

•GDP : RM 49.5 billion (as of 2010)

•Human Development Index : 0.773

•Urbanization: 80%

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Item MPSP MPPP

Tonnes % Tonnes %

Food 605.84 50% 206.23 33%

Yard & Garden 148.99 12% 59.86 10%

Paper 54.12 5% 176.15 28%

Plastics 208.10 17% 89.89 15%

Textile/Rubber 38.48 3% 19.02 3%

Metal 43.36 4% 29.09 5%

Hazardous 2.69 0% 1.92 0%

Others 98.42 8% 37.74 6%

Total 1,200.00 619.90

Composition of MSW, MPPP and MPSP, 2003Source: Satang 2003

UNDP SWM Study Report 2007

4

Source Waste Generation

rate (kg/c/d)

Amount of Waste

(tonne/day)

Organic Waste

(tonne/day)

Recyclable Waste

(tonne/day)

Non-Recyclable

Waste (tonne/day)

Household (HR) 0.91 400.7 143.1 194.5 63.2

Household (LR) 0.91 119.0 42.5 57.7 18.8

Household

(Individual)

0.84 98.3 35.1 47.7 15.5

Industrial 1.5 246.4 6.6 234.1 5.7

Wet market (stall) 19.3 40.6 37.5 3.1 0.1

Hawkers stall 8.67 19.7 18.7 0.8 0.2

Hotel (room) 1.35 17.0 15.8 1.1 0.0

School 0.009 2.8 1.7 1.1 0.0

College 0.016 0.3 0.1 0.2 0.0

Hospital (Beds) 0.57 2.3 1.5 0.8 0.0

Hypermarkets (m2) 0.0013 0.9 0.2 0.7 0.0

Universities 0.99 14.9 11.7 11.3

Turf Club (Manure) 10.0

Total 962.9 320.2 541.8 103.2

Table 4: Estimate of Solid Waste Generation by Source on Penang IslandSource: estimated by Study Team, 2005 (UNDP SWM Project) Note: There are high proportions of organic and recyclable waste fractions in this estimate.

Penang Waste Generation 2005 - 2013

Year Waste Disposed at Landfill Per

Year (metric tons)

Recycling Per Year (metric tons) Total Waste

Generation

Per Year

(metric Tons)

Recyclin

g Rate

(%)

MPPP MPSP Total MPPP MPSP Total

A B C=(A+B) B/C

2005 280,489 416,254 696,743 57,178 96,032 153,210 849,953 18.03%

2006 295,498 463,750 759,248 82,210 119,964 202,174 961,422 21.03%

2007 216,490 490,729 707,219 80,351 125,504 205,855 913,074 22.55%

2008 218,440 472,005 690,445 33,775 124,121 157,896 848,341 18.61%

2009 216,456 428,563 645,019 61,307 132,039 193,346 838,365 23.06%

2010 213,591 426,152 639,743 63,756 129,804 193,560 833,304 23.23%

2011 209,701 401,663 611,364 72,341 144,682 217,023 828,387 26.20%

2012 205,972 370,989 576,961 82,405 157,286 239,691 816,652 29.35%

2013 204,798 427,706 632,504 80,229 207,849 288,078 920,582 31.29%

Source:

Penang Island Municipal Council (MPPP),

2014

Seberang Perai Municipal Council (MPSP),

2014

Targets for Organic Waste Reduction for Penang State

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Organic

waste

Reduction

(%)5 10 20 30 40 50 60 70 80 100

Source: PEMANDU SWM Lab, 2011

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Project objective

Output-based neighbourhood incentive payment program to incentivize household organic waste separation at source.

Results-based Financing (RBF) In Penang’s Solid Waste Sector

•What

•Use an output-based incentive payment program in highrise buildings to encourage household organic waste separation

•Goal

•Successful source separation that in turn minimizes the quantity of garbage sent to landfills

•Expected Benefits

• Cost savings to municipality (extended life of landfill)

• Re-use of organic waste in the form of organic compost fertilizer

• Reduction of methane emissions from the MSW sector

Proposed RBF Design Source-Separation of Organic Waste

• Residents separate and deposit organic waste on-site facilityHigh Rise Buildings

• Collects waste from highrises and transports it to composting center

Local Authority / Private Company

• Calculates incentive payment amount based on IVA score

PIU(Project Implementation

Unit)

• Measure total quantity and quality of separated organic waste

VA (Verification Agent)

Pilot Projects SitesPenang Island

1. Taman Pelangi Flats, Lebuh Macallum, Penang Island –

Medium Cost Apartments

2. River Road Flats, Penang Island – Low Cost Flats

Seberang Perai

1. Taman Tanjung Indah Flats Butterworth. – Low Cost

Flats

2. Taman Pandan Apartments, Butterworth. – Medium Cost

Apartments

3. Harbour Place, Jalan Chain Ferry , Butterworth – High

end Condominiums

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No Item Block 9, Pelangi Apartment, Gat

Lebuh Macallum,

Penang Island.

River Road Low Cost Flats

The Peak Residences, Mt Erskine, Penang

Island

Park View Condo, Harbour Place,

Butterworth

Taman Pandan Butterworth

Taman Tanjung Indah Flats, Butterworth

1 Total number of blocks on site:

5 2 3 1 3 1

2 Number of units per block : Overall total units:

192

960

Block A: 279 Block B: 250 529

203

609

1

316

119

357

63

63

3 Estimated number of participating households :

35 50 45/50 240 107 63

4 Intended method / current method to treat or divert the organic waste:

Bio-regen Machine

Bio-regen Machine

Bio-regen Machine

Divert food waste to Waste processing plant

Divert food waste to Waste processing plant

Divert food waste to Waste

processing plant

5 Estimated number of occupants per household:

5

5 5 / 6 3 4 4

6 Current waste collection approach e.g. floor by floor, door to door collection, bring to common area / waste bin, frequency of

Residents bring to Bio-regen Machine

Floor to floor collection, then bring to common area every day

Floor to floor collection, then bring to common area every day

Floor to floor collection, then bring to common area every day

Bring to common area every day

Bring to common area every day

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Current waste collection approach e.g. floor by floor, door to door collection, bring to common area / waste bin, frequency of collection, estimated amount per day etc.

Residents bring to Bio-regen Machine

Floor to floor collection, then bring to common area every day

Floor to floor collection, then bring to common area every day

Floor to floor collection, then bring to common area every day

Bring to common area every day

Bring to common area every day

Estimated amount per day (kg/day)

(660kg x 3 bins x 80% full)

Estimated 1.5 tonnes

500 kg/day 912 kg/day 339 kg/day (1.072

kg/household)

500 kg/day 130 kg/day

Methodology to document and verify amount of organic waste disposed.

Food waste weighed daily before being processed by Bio-regen Machine. Water meter readings taken by collector to verify weight of food waste deposited.

Food waste weighed daily before being processed by Bio-regen Machine. Water meter readings taken by collector to verify weight of food waste deposited

Food waste weighed daily before being processed by Bio-regen Machine. Water meter readings taken by collector to verify weight of food waste deposited

Food waste weighed at collection point before transporting to Bagan Ajam Market Waste Processing Plant. Reweighing at Waste Processing Plant

Food waste weighed at collection point before transporting to Bagan Ajam Market Waste Processing Plant. Reweighing at Waste Processing Plant

Food waste weighed at collection point before transporting to Bagan Ajam Market Waste Processing Plant. Reweighing at Waste Processing Plant

Waste Collection Facility

A centralized rubbish collection area for each block

A centralized rubbish collection area for each block

A centralized rubbish collection area for each block with a Refuse Room at each floor

A centralized rubbish collection area for each block with a Refuse Room at each floor

A centralized rubbish collection area

A centralized rubbish collection area at entrance

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10 Number of ROROs/ waste bins and capacity

3 units of 660l bins for 1 unit of

block

1 114 (1 x 38 flr x 3 blocks)

1 3 1

11 Daily Average Per Household (kg) – Study Results

3.26 2.42 2.23 2.77 2.17

12 Average No. of Persons per Household – Study Results

3.7 5.4 3.3 5 3.2

13 Average Weight per capita / day (kg) – Study Results

0.89 0.45 0.68 0.55 0.68

Penang Island – Highrise Pilot Projects

Taman Pelangi Medium Cost

Apartments

Separation of Organic waste via food

processing machine

River road low cost flats

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Markets

FOOD TO FOODThe BIO-REGEN Process

FOOD WASTE MACHINE

FOOD FROM FOOD

COMPLETE CYCLE

Fertilizers / Soil

Amenders

/Conditioners

MPPP Chosen technology

PROGRAM MAJLIS PERBANDARAN PULAU PINANG

“MAKANAN MENJADI BALIK MAKANAN”

PUSAT PENJAJA BAYAN BARU

Projek Untuk Menukar Sisa Makanan Kepada Baja Bio-Cecair

PENANG ISLAND MUNICIPAL COUNCIL “FOOD TO FOOD” PROGRAMME

BAYAN BARU HAWKER CENTRE

A Project to Convert Food Waste into Liquid Bio-Fertiliser

BIO LIQUID SOIL AMENDERSPROJECT AT HAWKER CENTRE

Food Waste Diversion from Aug 2011 till Jul 2014

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Location Grand Total (kg) Bukit Jawi Golf Course 93,068.00 Girl Guides .A 1,780.00 B.B Market 118,984.50 Pulau Tikus Market 13,982.00 Campbell Street 20,818.00 Heng Ee High School 43,640.00 Union High School 3,700.00 Convent Greenlane 4,635.00 BM Sains School 12,740.00 Convent Light Street 4,960.00 Methodist B. School 1,100.00 Taman Pelangi 20,800.00 Jln Sungai Low Cost Flats 600.00

Total 340,807.50

Seberang Perai – Highrise Pilot Projects

Taman Pandan , ButterworthPark View Condo, Harbour Place, Butterworth

Separation of

Recyclables & Food

Waste

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BAGAN AJAM WET MARKET WASTE COMPOSTING PLANT

Food Waste Diversion since 2011 - June 2014

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No. Location Amount (kg)

1Factories (Intel, Phillips, Motorola, Agilent, IBT, Sony)

185,390.00

2 Hotels 9,633.00

3 Schools 5,989.00

4 Residential areas 11,512.50

TOTAL 212,524.50

Results of Highrise Residential Waste Composition Survey

Site

Daily %

Dai

ly A

vera

ge P

er

Ho

use

ho

ld (

kg)

Ave

rage

No

. of

Pe

rso

ns

pe

r H

ou

seh

old

Ave

rage

We

igh

t p

er

cap

ita

/ d

ay (

kg)

Foo

d

Gar

den

Pap

er

Pla

stic

Ferr

ou

s

Gla

ss

No

n-F

erro

us

Text

ile/

Ru

bb

er

Haz

ard

ou

s

E-w

aste

Oth

ers

Taman Pelangi

33.87 15.73 7.66 4.94 17.98 2.00 4.33 13.49 3.26 3.7 0.89

River Road Flats

42.09 10.06 8.39 5.36 7.31 0.26 5.56 20.97 2.42 5.4 0.45

Park View 35.08 13.79 10.58 5.08 11.45 1.07 3.95 18.99 2.23 3.3 0.68

Taman Pandan

34.28 11.99 8.51 9.74 11.85 3.36 20.28 2.77 5.0 0.55

Taman Tj Indah

37.68 10.75 7.21 4.12 12.27 1.04 7.47 19.47 2.17 3.2 0.68

Overall Average

36.0 12.5 8.5 5.8 12.2 1.5 5.3 18.6 2.57 4.12 0.65

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Incentive Calculator

INCENTIVE CALCULATOR - SUMMARY TABLE

Instructions:1. [Please populate the yellow boxes with data collected for each cycle]2. [The Incentive Payment calculation is based on the assumptions made in the following detailed spreadsheets]3. [Please review carefully the cycle lengh (box E4) and the minimum QTF Score (box E5) in the following detailed spreadsheets]

MPPP MPSP

Taman Pelangi

River Road

Park View

Tamam Pandan

Tamam Tanjung Indah

FOOD WASTE ACTUALLY SEPARATED PER CYCLE (TONS/CYCLE)

40.0 17.0 15.0 12.0 6.0

INCENTIVE PAYMENT (MYR/CYCLE) 4248 1805.4 431.31 904.60 327.63 26

Main AssumptionsMPSP PHI and Incentive Calculator

Length of a Cycle (Months) 3

Minimum Quantity of Separated Food Waste (QTF) Score 30

Ton of CO2 per ton of organic waste 1.7

Price of CO2 (MYR/ton of CO2) 24

Savings Waste Characterization / Unit Park View Tamam PandanTamam Tanjung

Indah

Cash Savings 193.26 Number of Households 316 357 63

Tipping fees (MYR/Metric ton) 20.26 Average Number of person per Households 3.3 5 3.2

Transportation costs (MYR/Metric ton)* 173 Average Daily total waste per Households (kg) 2.23 2.77 2.17

Non Cash Savings 46.8 Average portion of Organic Waste 0.35 0.34 0.38

CO2 Emissions (MYR/Metric ton) 40.8

Landfill lifespan extension (MYR/Metric ton) 6

Total Savings (MYR/metric ton) 240.06Total residential organic waste generated per cycle (tons/cycle) 22.57 30.76 4.75

Costs for the StateFood waste actually separated and collected per cycle (Tons/cycle) 15.00 12.00 6.00

Transport costs (MYR/Metric ton) ** 150

Operating costs - Salary of the operator (MYR/Metric ton) 0

Total Costs for the state (MYR/metric ton) 150Quantity of Separated Food Waste (QTF) Score (per cycle) 66.47 39.01 126.23

NET SAVINGS PER METRIC TONS (MYR) PHI - POTENTIAL SAVINGS (MYR/CYCLE)

Cash & Non Cash 90.06 PHI - Cash & Non Cash 1,350.9 2,880.7 540.4

Cash Only 43.26 PHI - Cash Only 648.9 2,319.1 259.6

INCENTIVE PAYMENT (MYR/CYCLE)

Cash & Non Cash 897.91 1123.66 682.07

Cash Only 431.31 904.60 327.63

* MPSP has fully internalized the collection/transportation of its waste since 1 July 2014.

** MPSP is collecting/transporting the waste to Shence facilities instead of Pulau Burung so the cost of transportation are a little lower for MPSP

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PROGRAM TIMELINE AND EVALUATION PERIOD

1st Cycle 2nd Cycle 3rd Cycle 4th Cycle

JAN MAR APR JUN JUL SEP OCT DEC

1 cycle = 3 months

1/1/2015 -31/3/2015 1/4/2015 -30/6/2015 1/7/2015 -30/9/2015 1/10/2015 -31/12/2015

Incentive Payment :

1st cycle:

APRIL 20152nd cycle:

JULY 2015

3rd cycle:

OCTOBER 2015

4th cycle:

JANUARY 2016

Best Practices documentation –on going

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Schools

• True Light Elementary School

• Tun Syed Sheh Shahabundin Science School

Residential Area (by Citizens)

• Permatang Nibong Resource Center

Residential Area (by NGO)

• Environnent Resource Center Taman Desa Damai

Residential Areas (by CCAC Pilot sites)

• Taman Pelangi

• Taman Pandan

Hospital

• Hospital Lam Wah Ee

Markets

• Bagan Ajam Market

• Campbell street Market

Commercial area

• Auto City (Golden highway Auto-City SD BHD)

Brochures

30

Composting Manual

31

Posters

32

Other on-going Organic Waste Diversion Projects

• Food to Food Programme Residential area composting / Individual household composting

• Green Waste Composting

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Green Waste TreatmentUtiilisng Methane-free fermentation technologies

Ampang Jajar Waste Transfer Station

Windrow Composting

of Municipal Green

Waste

THE GROUNDSWELL™

PROCESS

GREEN WASTE

Picking

Incoming Waste

Stage 1

Inoculating

With Starter & Seeder

Stage 2

Turning & Respraying

Stage

3Curing

Stage 4

Groundswell Static Fermentation ProcessWaste to top soil

4-6 weeks 8-12 weeks

In the Pipeline• Waste Separation at Source By-laws

• Waste Generator’s Pays Principle for Industrial & Commercial Sector

• Hotels

• Institutions

• Other organic waste

– Animal Carcasses

– Municipal Food waste

– Bio-mass

– Waste to energy via bio gas

• Other technologies

• Formulation of local laws and regulations 38

REVIEWING THE PENANG ORGANIC WASTE POLICY

• The Penang Organic Waste Policy seeks to encourage the separation and treatment of organic waste at source in order to divert such away from the landfill prolonging its lifespan and reducing municipal cost. This is part of Penang’s local action towards a global commitment to mitigate the effects of global warming and climate change.

• In any natural system the organic outputs of any natural process become the inputs for another natural process. In this regard, Penang’s Organic Waste Policy will seek to emulate nature and return all organic outputs to food production, parks and gardens

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In the Pipeline Tackling Organics and Methane Generation at theLandfill

• Possibility of landfill gas extraction in the closed Phase 1 and Phase 2 of the landfill.

• Turning the 300 acres of Oil Palm waste into a resource at the new Phase 3 of the Landfill.

• Establishing an MRF to separate the daily incoming mixed waste and dealing with the organic waste faction (400-600 tons/day) using a bio-digestion technology in Phase 3.

• Regional Workshop March 2015

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PROPOSED PENANG’S VOLUNTARY CARBON OFFSET SCHEME

Original Photo: churchofnobody.blogspot.com

OBJECTIVES

1• To divert the amount of organic waste (putrescibles) from the Pulau

Burong Sanitary Landfill and moving towards a total ban in the long term.

2• To reduce the costs of collection, transfer and treatment of organic

waste for the local authorities by treating organic waste at source.

3• To incentivise organic waste treatment by private and community efforts

through costs savings by local authorities.

4• To emulate nature and return all organic outputs to food production,

parks and gardens and energy production thereby completing the nutrient cycle to ensure a sustainable food supply and security.

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CONCLUSION

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• Generate a beneficial by-products = use reduction and conversion of organic waste to earn carbon offsets?

• Reducing the amount of organic waste sent to landfill = reducing greenhouse gas emissions

• Diverting green waste and organics divert up to 40 to 50% of the waste from landfill = cost savings

• Continuous awareness campaigns needed for participation

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